Holiday Sales in U.S. Fell as Much as 4%, SpendingPulse Says

[Warren Stupidity]

Source: bloomberg

Dec. 25 (Bloomberg) -- U.S. retail sales fell as much as 4 percent this holiday season as consumers limited purchases to necessities and cut back on clothing, electronics and jewelry, according to SpendingPulse.

Spending figures are the lowest since MasterCard Advisors started tracking data in 2002 to provide the SpendingPulse service, said Michael McNamara, vice president of research and analysis. He estimates sales, excluding autos and gasoline, fell 2 percent to 4 percent from Nov. 1 through yesterday.

Consumers facing a recession, tightening credit and the highest unemployment rate in 15 years shortened their gift lists and spent less. Retailers including Macy’s Inc. and AnnTaylor Stores Corp. responded by increasing markdowns, which stand to hurt profit margins in what may be the weakest holiday season in four decades.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a8wiuPS_mbs8&refer=home

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Ooops.

The mess Obama is inheriting continues to worsen.

[Robbien]

1. This snow storm sure didn't help matters much

Many stores will be closing shop in the coming months I fear.

[skooooo]

2. Maybe people have figured out they got enough sh*t already. nt

[Warren Stupidity]

4. Well perhaps they have.

However in an economy floating on consumer spending that will mean that a lot of people will have to get by with a lot less shit than they currently have.

It raises an interesting dilemma. Is a sustainable economy distinguishable from an economic depression?

[xchrom]

5. quality vs quantity --

buying a washing machine at a higher price -- made in america -- that will last many, many years regardless of warranty -- and everything else.

it used to be quality vs quality -- now we have haven't got that so much.

[PSPS]

3. Sales down 4%, but profits down much much more

... increasing markdowns, which stand to hurt profit margins in what may be the weakest holiday season in four decades.

A radio report I heard earlier said sales were down "as much as" 8%. But the retailers were essentially giving thigs away for cost in the last week or two. This means, for example, J.C. Penney's selling shirts which are usually priced at $50 for $5. So even an increase in gross sales would still mean a very sharp decline in operating profit.

This terrifies the shit out of the corporate media, which relies on retail advertising for all of its revenue (at least between election cycles when they make a boatload of money on political advertising.) So expect a plethora of stories highlighting the Potemkin "crush of shopping" being done after christmas. I think the Washington Post has just such a "story" today.